ODI contact lens is a revolutionary new product, which is aimed at replacing the traditional de-beaking technique used by farmers to minimize cannibalism among chickens. Being unique, there is no competition to the product in the market and hence ODI has the first mover advantage. There is very little awareness about the advantages of ODI among potential customers (chicken farmers). This product is in the introduction phase of the Product Life Cycle and the ODI team is faced with the task of developing a marketing and pricing program for the ODI lens.
ODI?s strengths include an exclusive patent on its technology and an exclusive contract with New World Plastics to manufacture lenses. However the company has limited cash ($200,025) and a very small sales force. Since this is a unique product, there is no competition to the ODI lens and, given the exclusive access to the market, there is unlikely to be any major competitors in the next three years.
There are three main consumer segments; Small Farms (10,000 or fewer birds), Medium Farms (10,000-50,000 birds) and Large Farms (over 50,000 birds). Due to lack of awareness among consumers about the benefits of the product, the perceived value of ODI lenses is almost zero. Chicken farming is a very low margin industry and the number of innovators will be limited to those farms that have enough cash to try new products.
ODI lens benefits include 1) decreased cannibalization rate (4.5% vs. 9% for debeaking), 2) trauma elimination from debeaking leading to loss of 1 egg per week and 3) reduced food and labor costs comparable to debeaking. The Accord Framework reveals the following: Advantage- Farmers have an advantage of potential economic savings of 23.9ÃÂ¢ per chicken (see Appendix 1); Complexity- Due to lack of experience with the product, farmers may...